Latest news with #TUIMusement
Yahoo
12-02-2025
- Business
- Yahoo
TUI AG (TUIFF) Q1 2025 Earnings Call Highlights: Strong Revenue Growth Amid Market Challenges
Revenue: Up 13% driven by holiday experiences, market, and airlines. Underlying EBIT: Increased by 51%, marking the 10th consecutive quarter of growth. Hotel and Resorts Performance: Up EUR60 million; Bed Nights up 3%, Occupancy up 2%, Daily Rate up 5%. Cruise Segment: Up EUR14 million; Capacity up 10%, Rates up 4%. TUI Musement: Increased by EUR9 million with experiences growth of 12%. Market and Airlines: Down by EUR30 million, primarily due to investments in the Nordic market. Net Debt: Remained flat compared to last year. Interest Expense: Improved versus prior year, with a focus on refinancing. Booking Trends: Winter bookings up 2%, Summer ASP up 4%. Guidance: Reaffirmed full-year underlying EBIT increase of 7% to 10%. Warning! GuruFocus has detected 4 Warning Signs with TUIFF. Release Date: February 11, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. TUI AG (TUIFF) reported its 10th consecutive quarter of underlying EBIT growth, supported by strong performance in hotel, cruise, and TUI Musement segments. Revenues increased by 13%, driven by holiday experiences and market and airlines, with a positive outlook for the upcoming summer season. The company achieved a BB rating from Fitch, reflecting improved financial discipline and structure, returning to pre-pandemic levels. TUI AG (TUIFF) is benefiting from a global customer base, with increased demand from regions such as the Caribbean and Spain, contributing to higher occupancy and rates. The company is making significant strides in sustainability, with new ships ready for green methanol and LNG, aligning with its long-term sustainability goals. Market and airlines segment reported a decline of EUR30 million, primarily due to investments in the Nordic and Northern European markets. There is a concern about volume slowdown in Germany and negative bookings in the UK, which could impact future growth. Despite a strong start, the company faces challenges in maintaining cruise occupancy rates, which are down compared to pre-pandemic levels. The company is cautious about adding fixed capacity, relying on dynamic packaging for growth, which may not yield immediate profitability. TUI AG (TUIFF) faces competitive pressure in the UK market, with competitors increasing their capacity significantly, which could affect market share. Q: Are you concerned about the volume slowdown in Germany compared to the figures you gave in December? And why are the hotel ADR figures accelerating in Q2 and the second half of the year compared to Q1? A: We are benefiting from our global portfolio and increased global travel, especially in regions like the Caribbean and Spain, where demand is strong from outside Europe. Regarding Germany, we are focusing on margin protection and managing volume strategically. We do not expect the market to weaken significantly. Q: How should we think about any benefit to the EUR400 million P&L interest expense over the next year or two, particularly in the context of the RCF refinancing? A: The RCF is linked to our rating category and is up for renewal before summer. The biggest cost is the commitment fee, as it is not heavily drawn. We expect more savings from the rating improvement, particularly in the lease and asset financing portfolio. Q: Can you help quantify the FDI benefits you've seen so far and how you're thinking about that in your guidance for the year? A: We have seen some impact from FDI last year, and there might be a small positive impact this year. However, it's difficult to quantify precisely as the market risk was known last year. We expect a modest growth in holiday experiences for the rest of the year. Q: With Ryanair included, are you taking other capacity out to match that? And do you make any profit on a Ryanair trip? A: The risk capacity remains flat, and growth is expected from dynamic content like Ryanair. We don't disclose profit numbers on partners, but any incremental business is positive for profitability. The strong distribution network helps secure occupancies and load factors. Q: Are you concerned about negative bookings in the UK, and what gives you confidence in improving this? A: We feel comfortable with the current booking status. Bookings seem to be slightly later, but the market is in good condition, and what we see for summer supports our guidance. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Euronews
11-02-2025
- Business
- Euronews
TUI Group sees robust demand for package holidays in late 2024
German travel and tourism giant TUI Group announced its first quarter financial year 2025 earnings on Tuesday, for the October to December 2024 quarter. It noted that 3.7 million clients travelled with the company during this period, which was a rise of 6% on an annual basis. TUI experienced an 18% surge in dynamically packaged holidays compared to the same period the previous year, coming up to 0.7 million holidaymakers. These packages are tailor-made holidays, with clients being able to choose from a vast range of flight options. The company's share price dropped 9.3% on Tuesday morning. Revenue for Q1 FY25 came up to €4.9 billion, which was a 13% increase compared to the corresponding period in the previous year. Underlying earnings before interest and taxes (EBIT) surged to €51m, compared to €6m in the same quarter in 2023. This was mainly because of robust performance in the Holiday Experiences department, which includes TUI Musement, Hotels & Resorts and Cruises. Fitch gave TUI a BB rating, with a stable outlook, bringing the company's rating back up to pre-pandemic levels. TUI also reiterated its outlook for the financial year 2025, expected 7% to 10% hike in underlying EBIT, while estimating a 5% to 10% rise in revenue. Sebastian Ebel, the chief executive officer (CEO) of TUI AG, said in the Q1 FY25 earnings press release on the company's website: 'TUI is strategically well positioned. Thanks to our integrated business model, we create synergies between the two business areas Markets + Airline, with our tour operators and flight business, and Holiday Experiences, with our own Hotels, Cruises and TUI Musement. 'The roadmap is clear: We are accelerating our transformation and aiming for global growth. We set the course for that in the last financial year and will continue to deliver consistently in 2025. The first quarter shows: our strategy is paying off, operationally we are delivering. People prioritise their holidays even in times of change, and even in a challenging economic environment in Europe for almost all sectors. For ten quarters in a row, TUI has successfully aligned trends, strategy and operational performance" Mathias Kiep, the chief financial officer (CFO) of TUI Group, also said in the press release: 'The promising performance in the first financial quarter of 2025, and thus the tenth consecutive quarter of earnings growth, will help us achieve our ambitious growth targets for the full year.' TUI Group sees rising demand for short and medium-haul destinations Increasing demand for winter short and medium-haul destinations boosted TUI's Q1 FY25 earnings, with Egypt, the Canary Islands and the Cape Verde islands seeing a rebound in interest. At present, average prices for winter 2024/2025 are 4% higher on an annual basis. Similarly, average prices for summer 2025 have risen 4% as well, compared to the same period in the previous year. For summer this year, the most popular holiday destinations are Greece, Spain and Turkey. Current bookings for summer 2025 and winter 2024/2025 have increased 2% compared to the corresponding period in the previous year. Ebel also shared that along with cementing its tour operation business in key European markets, TUI is also increasing its focus on new markets with high growth potential in Asia, Latin America and Southeast Asia. This move is expected to go a long way in helping the company reduce its dependence on Europe.
